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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure IT-2021-31/1980 – measures in Italy

Re-employment contract

Contratto di rioccupazione

Country Italy , applies nationwide
Time period Temporary, 31 July 2021 – 31 October 2021
Context COVID-19
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery
– Active labour market policies (enhancing employability, training, subsidised job creation, etc.)
Author Anna Mori (University of Milan)
Measure added 26 July 2021 (updated 29 July 2021)

Background information

The Law Decree no. 73 (article no. 41), issued on 25 May 2021, titled “Urgent measures related to the COVID-19 emergency, for businesses, employment, young people, health and local services” introduced a specific contractual arrangement targeting unemployed people. The so-called “re-employment contract” aims to facilitate the hiring and the re-insertion into the labour market of unemployed people, as according to the Legislative Decree n. 150 (article no. 19), issued on 14 September 2015.

Content of measure

The so-called “re-employment contract” is exceptionally introduced for a limited time span (from 1 July 2021 to the 31 October 2021) to encourage and sustain hiring of unemployed people with a subordinated contract in the phase of recovery of the activities in the aftermath of the pandemic emergency. To stipulate a re-employment contract, with the consent of the worker, a project of individual professional insertion is required, in order to guarantee a proper match between the professional skills of the worker and the new working context. The individual insertion project lasts six months. At the end of the insertion period, the parties can withdraw from the contract. If neither party withdraws, the re-employment contract is automatically converted into a subordinated open-ended contract. The companies (except for the agriculture and the domestic sector) applying the re-employment contract are exempt for the payment of the social security contributions for the first six months.

Use of measure

The measure has been activated starting from 1 July 2021. Data on its applications are not yet available.

Target groups

Workers Businesses Citizens
Unemployed
Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
Company / Companies
No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

The social partners have not been involved in designing, implementing or monitoring the measure.

Views and reactions

Despite the fact that the social partners had no role in designing, implementing or monitoring this extraordinary measure, their view is expected to be fully supportive.

Sources

Citation

Eurofound (2021), Re-employment contract, measure IT-2021-31/1980 (measures in Italy), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/IT-2021-31_1980.html

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